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The Future of Jobs Report 2018

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The Future of Jobs Report 2018 Insight Report The Future of Jobs Report 2018 Centre for the New Economy and Society Insight Report The Future of Jobs Report 2018 Centre for the New Economy and Society TERMS OF USE AND DISCLAIMER The Future of Jobs Report 2018 (herein: “report”) presents information and data that were compiled and/or collected by the World Economic Forum (all information and data referred herein as “Data”). Data in this report is subject to change without notice. The terms country and nation as used in this report do not in all cases refer to a territorial entity that is a state as understood by international law and practice. The term covers well-defined, geographically self-contained economic areas that may not be states but for which statistical data are maintained on a separate and independent basis. Although the World Economic Forum takes every reasonable step to ensure that the Data thus compiled and/or collected is accurately reflected in this report, the World Economic Forum, its agents, officers, and employees: (i) provide the Data “as is, as available” and without warranty of any kind, either express or implied, including, without limitation, warranties of merchantability, fitness for a particular purpose and non- infringement; (ii) make no representations, express or implied, as to the accuracy of the Data contained in this report or its suitability for any particular purpose; (iii) accept no liability for any use of the said Data or reliance placed on it, in particular, for any interpretation, decisions, or actions based on the Data in this report. Other parties may have ownership interests in some of the Data contained in this report. The World Economic Forum in no way represents or warrants that it owns or controls all rights in all Data, and the World Economic Forum will not be liable to users for any claims brought against users by third parties in connection with their use of any Data. The World Economic Forum, its agents, officers, and employees do not endorse or in any respect warrant any third-party products or services by virtue of any Data, material, or content referred to or included in this report. Users shall not infringe upon the integrity of the Data and in particular shall refrain from any act of alteration of the Data that intentionally affects its nature or accuracy. If the Data is materially transformed by the user, this must be stated explicitly along with the required source citation. For Data compiled by parties other than the World Economic Forum, users must refer to these parties’ terms of use, in particular concerning the attribution, distribution, and reproduction of the Data. When Data for which the World Economic Forum is the source (herein “World Economic Forum”) is distributed or reproduced, it must appear accurately and be attributed to the World Economic Forum. This source attribution requirement is World Economic Forum attached to any use of Data, whether obtained directly from the 91-93 route de la Capite World Economic Forum or from a user. CH-1223 Cologny/Geneva Switzerland Users who make World Economic Forum Data available to Tel.: +41 (0)22 869 1212 other users through any type of distribution or download Fax: +41 (0)22 786 2744 environment agree to make reasonable efforts to communicate E-mail: [email protected] and promote compliance by their end users with these terms. www.weforum.org Users who intend to sell World Economic Forum Data as part ©2018 World Economic Forum of a database or as a standalone product must first obtain the All rights reserved. permission from the World Economic Forum Centre for the New Economy and Society ([email protected]). No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system. ISBN 978-1-944835-18-7 Contents v Preface vii Key Findings 1 PART 1: PREPARING THE FUTURE WORKFORCE 3 Introduction 6 Strategic Drivers of New Business Models 7 Workforce Trends and Strategies for the Fourth Industrial Revolution 15 The Future of Jobs across Industries 17 The Future of Jobs across Regions 19 A Look to the Recent Past (in Collaboration with LinkedIn) 22 Conclusions 25 References and Further Reading 27 Appendix A: Report Methodology 31 Appendix B: Industry and Regional Classifications 33 PART 2: INDUSTRY AND COUNTRY/REGION PROFILES 35 User’s Guide: How to Read the Industry and Country/Region Profiles 41 Industry Profiles 67 Country/Region Profiles 127 Contributors 129 System Initiative Partners 131 Survey Partners 133 Acknowledgements iii Preface KLAUS SCHWAB Founder and Executive Chairman, World Economic Forum The emerging contours of the new world of work in the increased demand for new roles will offset the decreasing Fourth Industrial Revolution are rapidly becoming a lived demand for others. However, these net gains are not a reality for millions of workers and companies around the foregone conclusion. They entail difficult transitions for world. The inherent opportunities for economic prosperity, millions of workers and the need for proactive investment societal progress and individual flourishing in this new in developing a new surge of agile learners and skilled world of work are enormous, yet depend crucially on the talent globally. ability of all concerned stakeholders to instigate reform in To prevent an undesirable lose-lose scenario— education and training systems, labour market policies, technological change accompanied by talent shortages, business approaches to developing skills, employment mass unemployment and growing inequality—it is critical arrangements and existing social contracts. Catalysing that businesses take an active role in supporting their positive outcomes and a future of good work for all will existing workforces through reskilling and upskilling, require bold leadership and an entrepreneurial spirit from that individuals take a proactive approach to their businesses and governments, as well as an agile mindset own lifelong learning and that governments create an of lifelong learning from employees. enabling environment, rapidly and creatively, to assist in The fundamental pace of change has only accelerated these efforts. Our analysis indicates that, to date, many further since the World Economic Forum published its initial employers’ retraining and upskilling efforts remain focused report on this new labour market—The Future of Jobs: on a narrow set of current highly-skilled, highly-valued Employment, Skills and Workforce Strategy for the Fourth employees. However, in order to truly rise to the challenge Industrial Revolution—in January 2016. With an increased of formulating a winning workforce strategy for the Fourth need for tangible evidence and reliable information from Industrial Revolution, businesses will need to recognize the frontlines of this change, this new edition of the human capital investment as an asset rather than a liability. Future of Jobs Report once again taps into the collective This is particularly imperative because there is a virtuous knowledge of those who are best placed to observe the cycle between new technologies and upskilling. New dynamics of workforces—executives, especially Chief technology adoption drives business growth, new job Human Resources Officers, of some of the world’s creation and augmentation of existing jobs, provided it can largest employers—by asking them to reflect on the latest fully leverage the talents of a motivated and agile workforce employment, skills and human capital investment trends who are equipped with futureproof skills to take advantage across industries and geographies. of new opportunities through continuous retraining and A particular focus of this new edition of the report is upskilling. Conversely, skills gaps—both among workers on arriving at a better understanding of the potential of and among an organization’s senior leadership—may new technologies, including automation and algorithms, significantly hamper new technology adoption and to create new high-quality jobs and vastly improve the therefore business growth. job quality and productivity of the existing work of human At the World Economic Forum’s Centre for the New employees. As has been the case throughout economic Economy and Society, we provide a platform for leaders history, such augmentation of existing jobs through to understand current socio-economic transformations technology is expected to create wholly new tasks—from and shape a future in which people are at the heart of app development to piloting drones to remotely monitoring economic growth and social progress. A significant portion patient health to certified care workers—opening up of our activities aim to support leaders in managing the opportunities for an entirely new range of livelihoods for future of work. This biannual report provides a five-year workers. At the same time, however, it is also clear that outlook based on the latest thinking inside companies and the Fourth Industrial Revolution’s wave of technological is designed to inform other businesses, governments and advancement is set to reduce the number of workers workers in their decision-making. Additionally the Centre required for certain work tasks. Our analysis finds that is working across multiple industries to design sector-level v The Future of Jobs Report 2018 roadmaps to respond to the new opportunities and challenges of managing workforce transitions. The Centre is also supporting developed and emerging economies in setting up large-scale public private collaborations to close skills gaps and prepare for the future of work. Finally, the Centre acts as a test bed for early-stage work at the frontier of managing the future of work, ranging from the development of new principles for the gig economy to the adoption of common skills taxonomies across business and education. We would like to express our appreciation to Vesselina Ratcheva, Data Lead, Centre for the New Economy and Society; Till Alexander Leopold, Project Lead, Centre for the New Economy and Society; and Saadia Zahidi, Head, Centre for the New Economy and Society for their leadership of this report.
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